Investigation on the Futures Contract of the Gold Coin Traded on Iran Stock Exchange

Investors on the Iranian stock exchange welcomed future contract as one of the derivative instruments in the field of coinage transactions in 2008. This kind of contract had a significant impact on controlling cash market fluctuations. In fact, this type of contract is a good option for directing liquidity sources to invest in price balancing in Iranian financial markets. However, the futures contract for the traded gold coins on the Iranian stock exchange has two main legal problems. Under this type of contract, the buyer has not delivered the gold coins at the time of signing the contract and he can conclude a new future contract in the stock market before delivery at a given date, which is an obvious example of executory sale (a sale that both object and price executory). Furthermore, this type of contract is also similar to the gambling contract for each party to the transaction may equally make a profit or bear a loss out of it. The question that arises is, is this type of contract legitimate from the legal and jurisprudential point of view? Our studies suggest that the future contract is equivalent to possible time contract (Bakhtiqi), and with investigating in the words of Imamieh jurisprudents and lawyers of Iran under the discussions of executory sale, set-off, and gambling, this type of contract meets Islamic and legal standards for a valid contract, which is permissible under the principle of freedom of contract.